Page 9 - By The Waters Of Liverpool - Information Booklet
P. 9
THE 1929 WALL STREET CRASH
Caused by panic selling on the New York
stock exchange following an artificial boom
from 1927 to 1929 fed by speculation. On
the 24th October 1929, 13 million shares
changed hands, with further heavy selling
on the 28th October and the disposal of 16
million shares on the 29th October. As the
crash deepened many shareholders were
ruined, banks and businesses failed, and
in the depression that followed, US unem-
ployment rose to approximately 17 million.
HOW THE CRASH AFFECTED EUROPE
People in Europe faced homelessness and
unemployment at alarming rates. Studies
carried out in the United Kingdom between
1934 and 1938 showed that 19 percent of
Panic-stricken investors on Wall Street after the stock market the people were on a substandard diet.
crash of 29th October 1929.
The repercussions of the Wall Street Crash Along with homelessness and unemploy-
experienced throughout the USA were also ment, one of the most significant effects
felt in Europe, worsened by the reduction of of the depression in Europe was the rise
US loans. A world economic crisis followed of extremist political parties. In the United
the crash, bringing an era of depression and Kingdom, both the Communist Party and
unemployment. Between the 29th October the British Union of Fascists received popu-
and the 30th November (when stock prices lar support in run-down areas of many inner
hit their lowest point), over $30 billion dis- cities. Extremism was most apparent in Ger-
appeared from the American economy. many, where Adolf Hitler seized the chance
to win the backing of many Germans dissat-
The greatest financial crisis in US history. The isfied with the leadership of their country
collapse of the stock market ended a period after World War I.
of prosperity and ushered in the `Great
Depression’. He persuaded many Germans that he would
make them proud of their nation once
again. Hitler gained control of the country
in 1933. He soon began to re-arm Germany,
which put industry back to work again and
reduced unemployment, but ultimately,
Hitler’s Nazi ideology would lead to World
War II.
